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Huth Thompson LLP

Posts by Huth Thompson

Is Your Hobby Actually a Business?

Millions of people have hobbies, but when your favorite hobby starts to turn a profit, the IRS may consider it a business. What is the difference? The IRS defines a hobby as any activity not pursued for profit, whereas a business is defined as any activity done with the reasonable expectation of earning a profit. It is important for taxpayers to…

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Indiana College Choice 529 Direct Savings Plan

Saving for the costs of education for your children is a daunting task for most taxpayers. The state of Indiana offers a tax credit that can directly offset your Indiana income tax for qualifying contributions. Effective January 1, 2019 the income tax credit for contributions made to an account that will be used for paying…

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The Indiana College Credit

The Tax Cuts and Jobs Act (TCJA) passed on December 20, 2017 was the biggest tax bill since the Tax Reform Act of 1986. As a CPA, this new act has greatly impacted my profession. One area of impact is on form Schedule A, where itemized deductions are reported. State, Local and Real Estate Taxes…

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IRA Contribution to Charity

With the filing season now complete for the 2018 tax year, many taxpayers may have noticed that the standard deduction pretty much doubled. The standard deduction was increased to $24,000 per married couple ($12,000 for single tax payers) with the new TCJA tax legislation beginning in 2018, which in turn created a much lower number of taxpayers…

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Indirect Roth IRA Strategy

Lincoln Perkins, CPA   Mr. and Mrs. Roth want to accumulate monies in individual Roth IRA’s so they will have an income tax free source of cash during their future retirement. Unfortunately, their adjusted gross income is higher than the IRS limits and they are prohibited from making direct contributions to a Roth IRA. The…

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Ron’s Legacy

Many of you may have already heard, but for those who have not, we wanted to pass along the sad news that Ron Huth has passed away. Ron was a mentor, friend, colleague and all around wonderful person. We will miss him terribly. We would love to hear how Ron impacted your life so if you have…

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What Do You Love?

What do you love? Each year on Valentine’s Day it’s nearly impossible to avoid the barrage of hearts and hues of red and pink that flood the world over. Candy and flowers and chocolates suddenly appear in every retailer from the grocery store to the gas station. The signs of love are everywhere. For the…

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Reasonable Compensation

As an S Corporation owner, reasonable compensation is likely a concept that has been discussed with you. With the passage of the Tax Cuts and Jobs Act, this topic may be one that needs further explored. A 20% deduction is now available based on your Qualified Business Income, essentially net taxable profit of your entity.…

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